ACC111 Final_TER2172695 - Green Mountain Coffee Roasters...

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Teresa Parks TER2172695 | ACC111 FINAL Green Mountain Coffee Roasters, INC. Financial Analysis and Interpretation
Understanding a company’s working capitals and current ratios is important to determine on a yearly basis. These figures allow stake holders, investors and current owners to see if their company will be able to keep paying their debts and stay in business as well as see liquidity of a company’s assets. “Liquidity measures how quickly and easily an account can be converted to cash (because cash is the most liquid asset) (2014, page 210). Asset turnover is equally as important because it shows the net sales that were made for each dollar that was invested. Working capital is the difference between the current assets and current liabilities. Once this equations is figured out you will either have a positive or negative number. “The working capital is available to pay your company’s current debts, and represents the cushion or margin or protection you can give your short-term creditors” (Working Capital, Paragraph 1). The working capital has increased since the year 2009 for Green Mountain Coffee Roasters, INC. A positive working capital

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